State Street Revives Cryptocurrency Custody Business After Layoffs
CryptoNewsTerminal Staff03 Jun, 2024
State Street Revives Cryptocurrency Custody Business After Layoffs
State Street, a leading US asset manager, is resurrecting its cryptocurrency custody business, which it discontinued last year. The firm has commenced recruiting for positions in its crypto division, marking the first hiring activity in this unit in six months following a round of layoffs. State Street Digital, the company's crypto division, underwent a restructuring that shifted certain operations to other divisions within the firm. However, the recent hiring drive suggests a renewed commitment to the crypto sector. State Street, known for its traditional financial services, initially entered the cryptocurrency market in 2021 with the launch of State Street Digital. However, in September 2022, the firm announced the suspension of this business due to market conditions and regulatory uncertainty. The relaunch of State Street's cryptocurrency custody business reflects the growing institutional interest in digital assets. As cryptocurrencies gain wider acceptance, traditional financial institutions are seeking ways to incorporate them into their offerings. State Street's move is a testament to this trend and demonstrates the potential of cryptocurrencies in the mainstream financial ecosystem.
